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Fret and Regret: A Consumer Decision-Making Dilemma
As a birthday present, Mike has just been given a new smartphone by his girlfriend Molly. However, it is not the phone he wants. Over the course of a few days, Mike struggles with the decision of whether to return the phone and get the one he wants, or keep the one he received as a gift. The case is written from the perspective of the consumer, and deals with consumer behavior issues such as anticipatory regret. It would be useful in an introductory marketing or undergraduate consumer behavior course. -
Canada Goose: The South Korean Opportunity
Canada Goose is a Canadian maker of high-end winter outdoor clothing. Currently available in 40 countries, the company's chief executive officer (CEO) is considering entering the South Korean market. Were Canada Goose to enter South Korea, the CEO knew that there were several issues that had to be resolved. There were complicated distributor issues, and the CEO was also uncertain about which style of jacket to sell to the new customer groups. Finally, deciding how to position Canada Goose in order to reach the two target groups for Canada Goose in South Korea was something that had bothered him ever since he had first received the market research. Those issues aside, the CEO also had to consider how the current state of the company, both in North America and Western Europe, would impact the success of a full-scale foray into South Korea. The CEO was excited for the opportunity for Canada Goose in South Korea, but yet he was stymied on how to maximize growth while positioning the brand as strongly as possible. -
Canada Goose: The South Korea Opportunity
Canada Goose was a Canadian maker of high-end winter outdoor clothing that was available in 40 countries. The company’s CEO was considering entering the South Korean market, which would entail resolving several problems. There were distributor complications, and it was unclear which style of jacket to sell to the new customer groups. Finally, deciding how to position Canada Goose in order to reach the two target groups for Canada Goose in South Korea was something that had bothered the CEO ever since he had first received the market research. Those issues aside, the firm also had to consider how the current state of the company, both in North America and Western Europe, would impact the success of a full-scale entry into South Korea. The CEO was excited for the opportunity for Canada Goose in South Korea, yet he was unsure how to maximize growth while positioning the brand as strongly as possible. -
Redesigning Sunnymeadows.ca (A)
A marketing manager at an RV park developer wants to update the company’s online presence in preparation for a new product launch. Lacking any website design skills himself, he must address various issues, such as where to find potential web design agencies, and how to select an agency. Soon after selecting an agency, the marketing manager begins to doubt his decision. The agency does not seem aligned with the marketing manager’s strategic vision for the website, and has wasted valuable time producing work that must be discarded. The marketing manager, now too close to the new product launch to hire a new agency, must determine how to ensure the agency’s work adheres to the project’s strategy, budget, and timeline. -
Redesigning Sunnymeadows.ca (B)
This case is a supplement to Redesigning Sunny Meadows.ca (A). -
Struggling to Make the Best Buy (A)
As her boyfriend's birthday was fast approaching, Ashley struggled to make a decision on what mp3 player to buy him (Kade) as a gift. After failing to acquire her first desired choice, Ashley narrowed her selection down to two different mp3 models. Option A was to buy the Creative Zen Stone Plus, which was recommended by her boyfriend's best friend; a friend who knew Kade's personality and character very well. Ashley believed Kade's friend would be a good source to ask for recommendations, as he would have a better knowledge over Kade's interests and preferences. Option B was to buy the Rio Carbon 5, which was recommended by the salesman, who claimed to be an expert in mp3 players. She felt somewhat relieved hearing from an expert, as she did not know much about mp3 players. Given these two options, Ashley struggled to make a decision. Should she go with the suggestion offered by the friend? Or should she go with the suggestion offered by the expert? Should she go with her interpersonal advisor or the expert advisor? Ashley had to make the decision today, and she was running out of time. -
Hanson Production: Pricing for Opening Day
The president of production at Hanson Productions, an off-Broadway production company, was faced with the same situation for every Broadway production: where to locate, how many seats, what to charge and how to promote and market the production. There are three separate venues, with three separate value propositions to the studio, case and audience. While bigger means more seats and more revenue for each show, there is a capacity percentage that must be factored in to the decision due to the increased rental costs. Smaller venues may lead to higher capacity percentages, but ultimately leave money on the table. The ticket prices must be set for advance sales; any change in price after this period will effectively hurt future sales - more so if the price is discounted. Determining a promotion partner may lessen the risk of a potential failure, yet cost more profit and affect the recoup schedule. -
Hanson Production: Pricing for Opening Day
The president of production at Hanson Productions, an off-Broadway production company, was faced with the same situation for every Broadway production: where to locate, how many seats, what to charge and how to promote and market the production. There are three separate venues, with three separate value propositions to the studio, case and audience. While bigger means more seats and more revenue for each show, there is a capacity percentage that must be factored in to the decision due to the increased rental costs. Smaller venues may lead to higher capacity percentages, but ultimately leave money on the table. The ticket prices must be set for advance sales; any change in price after this period will effectively hurt future sales - more so if the price is discounted. Determining a promotion partner may lessen the risk of a potential failure, yet cost more profit and affect the recoup schedule. -
Struggling to Make the Best Buy
As her boyfriend's birthday was fast approaching, Ashley struggled to make a decision on what mp3 player to buy him (Kade) as a gift. After failing to acquire her first desired choice, Ashley narrowed her selection down to two different mp3 models. Option A was to buy the Creative Zen Stone Plus, which was recommended by her boyfriend's best friend; a friend who knew Kade's personality and character very well. Ashley believed Kade's friend would be a good source to ask for recommendations, as he would have a better knowledge over Kade's interests and preferences. Option B was to buy the Rio Carbon 5, which was recommended by the salesman, who claimed to be an expert in mp3 players. She felt somewhat relieved hearing from an expert, as she did not know much about mp3 players. Given these two options, Ashley struggled to make a decision. Should she go with the suggestion offered by the friend? Or should she go with the suggestion offered by the expert? Should she go with her "interpersonal advisor" or the "expert advisor"? Ashley had to make the decision today, and she was running out of time. -
Please Stop Working So Hard!
A new production supervisor at an automobile engine plant has encountered his first challenging task. The production supervisor must find a way to diffuse the tension between his team leader and other machine operators on the line. The team leader, the hardest worker among the group, was repeatedly criticized for over-exerting himself in many areas of the line. The workers feared that their jobs would be in jeopardy if workaholics like the team leader started undertaking multiple tasks. In addition, the workers began to feel that they were receiving unequal treatment from the production supervisor as the team leader was given special permission to break team norms. As the morale of the group continued to deteriorate, the production supervisor wanted to confront the team leader about this unique quandary. The production supervisor needed to figure out a solution to best please the team leader and the entire group. -
Please Stop Working So Hard!
A new production supervisor at an automobile engine plant has encountered his first challenging task. The production supervisor must find a way to diffuse the tension between his team leader and other machine operators on the line. The team leader, the hardest worker among the group, was repeatedly criticized for over-exerting himself in many areas of the line. The workers feared that their jobs would be in jeopardy if workaholics like the team leader started undertaking multiple tasks. In addition, the workers began to feel that they were receiving unequal treatment from the production supervisor as the team leader was given special permission to break team norms. As the morale of the group continued to deteriorate, the production supervisor wanted to confront the team leader about this unique quandary. The production supervisor needed to figure out a solution to best please the team leader and the entire group. -
Habitat for Humanity London: The Challenge of Growth
In early 2009, the executive director of the Habitat for Humanity London (HFHL), located in London, Ontario, was faced with the responsibility of determining how to increase revenue for the non-profit organization. The organization provided safe, decent and affordable housing to those in need, and the board of directors had pledged to build 12 units in 2012. Funding generally came from the organization's ReStore; however, revenues had begun to level off in the preceding years. The executive director was evaluating several options of generating additional revenue. After examining HFHL's statement of cash flows and 10 years of ReStore earnings, the executive director had identified three options to increase revenues: relocation of the ReStore to increase efficiencies and increase inventory; increasing their salvage operation; and/or launching an automobile sale program. Or was there a better way to generate revenue that she hadn't yet considered? -
Terra Bite Lounge: Pay What You Want Café
In April 2009, the founder and owner of Terra Bite Lounge was considering opening another location. The Terra Bite Lounge was a Kirkland, Washington café with no prices and voluntary payment. The owner believed that Terra Bite was a demonstration of a high level of honesty and trust, between himself and the customer. There were several considerations to evaluate in deciding to open a new location. Where should the new location be? The current location was in an affluent suburb but the owner believed that several types of neighbourhoods would be receptive. What types of consumer characteristics would best be suited towards this model of trusting that payment would be made? Is there anything that could be added to the current model to make Terra Bite more successful? He was careful to consider those changes or additions that were consistent with the current social trust component of the original Terra Bite model. -
Terra Bite Lounge: Pay What You Want Cafe
In April 2009, the founder and owner of Terra Bite Lounge was considering opening another location. The Terra Bite Lounge was a Kirkland, Washington café with no prices and voluntary payment. The owner believed that Terra Bite was a demonstration of a high level of honesty and trust, between himself and the customer. There were several considerations to evaluate in deciding to open a new location. Where should the new location be? The current location was in an affluent suburb but the owner believed that several types of neighbourhoods would be receptive. What types of consumer characteristics would best be suited towards this model of trusting that payment would be made? Is there anything that could be added to the current model to make Terra Bite more successful? He was careful to consider those changes or additions that were consistent with the current social trust component of the original Terra Bite model. -
Nashville Predators: Marketing Strategy for an NHL Franchise
In summer 2008, the Nashville Predators' management team was considering the strategy behind marketing the team. They thought it prudent to investigate the feasibility of opportunities in other hockey markets throughout North America, should a new owner want to move the team. Management had to consider both financial returns and on-ice success. They needed to create a comprehensive strategy, starting from a recommended location, and moving through specific recommendations on promotions, pricing and customer focus. To help create their strategy, the management team performed the following: developed a comprehensive tactical marketing plan, including income projections; identified the marketing challenges of operating in very different markets; recognized that the choice of a city location largely constrained the remaining decisions and tactics. Using this information, the management team could now identify their next steps, and what future plans should include. -
Canada Goose Inc.: At a Retail Crossroads
In June 2008, the president and owner of Canada Goose Inc. (Canada Goose), a producer of luxury sport jackets, was contemplating the future of his company. Despite recent years' steady growth in both his company and the industry in general, the president believed that a significant opportunity existed for Canada Goose to further cement itself as a market leader for this industry. The president was intrigued by two separate offers from national retailers in Canada. Both were in the form of long-term contracts; in the past Canada Goose had used such contracts to maintain successful relationships with its many distributors. The offers were lucrative; however, the president needed to consider whether the offers aligned with the company's current marketing strategy. Agreeing to stock its product through a national chain would be a departure from its current method of distribution through independently-owned regional retailers. Accepting either of the offers would not only potentially price these retailers out of the market but could also lead to the devaluation of the brand. -
Canada Goose Inc.: At a Retail Crossroads
In June 2008, the president and owner of Canada Goose Inc. (Canada Goose), a producer of luxury sport jackets, was contemplating the future of his company. Despite recent years' steady growth in both his company and the industry in general, the president believed that a significant opportunity existed for Canada Goose to further cement itself as a market leader for this industry. The president was intrigued by two separate offers from national retailers in Canada. Both were in the form of long-term contracts; in the past Canada Goose had used such contracts to maintain successful relationships with its many distributors. The offers were lucrative; however, the president needed to consider whether the offers aligned with the company's current marketing strategy. Agreeing to stock its product through a national chain would be a departure from its current method of distribution through independently-owned regional retailers. Accepting either of the offers would not only potentially price these retailers out of the market but could also lead to the devaluation of the brand. -
Nashville Predators: Marketing Strategy for an NHL Franchise
In summer 2008, the Nashville Predators' management team was considering the strategy behind marketing the team. They thought it prudent to investigate the feasibility of opportunities in other hockey markets throughout North America, should a new owner want to move the team. Management had to consider both financial returns and on-ice success. They needed to create a comprehensive strategy, starting from a recommended location, and moving through specific recommendations on promotions, pricing and customer focus. To help create their strategy, the management team performed the following: developed a comprehensive tactical marketing plan, including income projections; identified the marketing challenges of operating in very different markets; recognized that the choice of a city location largely constrained the remaining decisions and tactics. Using this information, the management team could now identify their next steps, and what future plans should include. -
Does It Pay to Be Good?
This is an MIT Sloan Management Review article. That is a question that has long puzzled marketers who have heard from customers that they want to do business with ethically based firms -- defined as companies that produce products under conditions of progressive stakeholder relations, advanced environmental practices and respect for human rights. Marketers had no reason to doubt that sentiment, but they have always wondered if consumers would be willing to pay a higher price for ethically produced goods (since they tend to be more expensive to create.) It turns out that a series of controlled experiments proves that consumers will, in fact, pay a premium for ethically produced goods. But perhaps of equal interest is the fact that they will punish (by demanding a lower price) companies that are not seen as ethical. That relationship is not symmetrical. The punishment exacted is greater than the premium customers are willing to pay. How ethical do you have to be? Perhaps not as much as you might think. The research shows that a small degree of ethicalness "pays off" It is not necessary for a company's product to be "100% pure" in order to receive a price premium. This research is the first to find that consumers use price to punish unethical companies more than they use price to reward ethical companies, and that the ethicality of a company's behavior is, indeed, an important consideration for consumers (as demonstrated in their willingness-to-pay decisions). -
Ions Consulting: The MP^2 Training Program
The recently hired human resources (HR) director had to come up with a program that would meet the needs of transferring knowledge from older, more experienced project consultants to the junior and newly hired inexperienced associates. The HR director designed a program called the Mentoring Management Project for Professionals (MP^2). The program met with great resistance from all levels of the organization, which made the development and the implementation process more difficult. The MP^2 program was implemented on a trial basis and after four months, due to mixed results, the HR director was more confused than ever. He had three days left to prove to the executive board that the program is worth the cost, the time and the resources to implement.